Luanda - Economy

Economy

Around one-third of Angolans live in Luanda, 53% of whom live in poverty. Living conditions in Luanda are poor for most of the people, with essential services such as safe drinking water and electricity still in short supply, and severe shortcomings in traffic conditions. On the other hand, luxury constructions for the benefit of the wealthy minority are booming. Luanda is one of the world's most expensive cities for resident foreigners. Manufacturing includes processed foods, beverages, textiles, cement and other building materials, plastic products, metalware, cigarettes, and shoes/clothes. Petroleum (found in nearby off-shore deposits) is refined in the city, although this facility was repeatedly damaged during the Angolan Civil War (1975–2002). Luanda has an excellent natural harbour; the chief exports are coffee, cotton, sugar, diamonds, iron, and salt. The city also has a thriving building industry, an effect of the nationwide economic boom experienced since 2002, when political stability returned with the end of the civil war. Economic growth is largely supported by oil extraction activities, although massive diversification is taking place. Large investment (domestic and international), along with strong economic growth, has dramatically increased construction of all economic sectors in the city of Luanda.